Company registration number 08064727 (England and Wales)
NAUGHTONE (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
NAUGHTONE (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr R Woodbridge
Mrs N McNaught
Mr C Hagan
Company number
08064727
Registered office
Central House
Beckwith Knowle
Harrogate
North Yorkshire
HG3 1UG
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
NAUGHTONE (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 33
NAUGHTONE (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -

The directors present the strategic report for the year ended 31 May 2023.

Fair review of the business

The group design and manufacture ancillary furniture for the contract market. We manufacture in Yorkshire, UK but supply into global geographical markets. Our key markets continue to be the UK and Ireland and North America. APMEA and Europe are strong emerging markets.

 

The group continued to grow during the year, in terms of sales and operating profit. The group's sales improved to £31,892,021 (2022 - £26,241,295), an increase of 21.5% year on year. The group realised profit after tax of £3,895,330 (2022 - £3,595,429), an increase of 8.3% year on year.

Principal risks and uncertainties

The group faces strategic, operational and financial risk relating to its chosen activities and markets. UK and Global economies pose a risk to NaughtOne's short term performance. Trading across multiple geographical markets and market segments diversifies our risk.

 

NaughtOne sources products from, and sells-to, a global market. Global raw materials price increases and logistical challenges present a risk to the group's activities.

 

The commercial furniture market is competitive. The group benefits from commercial opportunities provided by being a brand within the MillerKnoll collective.

 

Trading in foreign currencies, NaughtOne is exposed to exchange rate fluctuations. We have a hedging policy to minimize risk of the financial impact from this.

 

Legislative risk applies for our products and manufacturing environment. Product standards are subject to continuous revision which could impact our profitability.

Key performance indicators

The group’s key financial indicators during the period were as follows:

 

2023

£000

2022

£000

Change

%

Turnover

31,892

26,241

21.5

Operating Profit

4,878

4,438

9.9

Profit after tax

3,895

3,595

8.3

 

NAUGHTONE (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
Strategy

The group aspires to provide people across the globe with useful, beautiful furniture that works in any commercial space. NaughtOne achieves its vision by combining great design with vast choice and robust functionality, supported by class-leading service from friendly experts.

We practice business in a responsible way that respects people and the planet, enabling us to thrive in diverse global markets.

 

We have developed a set of goals, which work together to deliver continued growth & profitability:

 

We stand for good design

Design that's inspiring, useful, durable, versatile, well-crafted, and distilled to its essence. We design for people with an ambition to improve quality of life at work, rest and play.

 

Unrivalled choice

At NaughtOne choice of colour, finish, fabric and material comes as standard. In an industry with an ‘any colour as long as it’s black’ mindset this sets us apart and means that our customers get what they really want.

 

Enduring relationships

We place a focus on people and relationships. Whether you are a specifier, dealer or end user, our approach is based on trust, honesty and working together to exceed expectations.

 

Uncompromising quality

Our furniture is designed and engineered to endure time, trends and use. We back this commitment with a standard 10-year warranty.

 

Serious about sustainability

Since its inception NaughtOne has always sought to have a positive impact on and in the world. Our approach is based on authenticity, transparency and innovation, and we have led the way in environmental certifications, circular design and sustainability education.

 

Available globally

With a global team and an ambitious localisation programme, we deliver on time and in full across the world.

Future developments

The Directors remain confident that their strategy will deliver continued growth and profitability. We are seeing significant growth in the start of the new financial year, and the group will continue to invest in people, product and process in our commitment to providing excellent and innovative furniture solutions to our customers.

On behalf of the board

Mrs N McNaught
Director
20 February 2024
NAUGHTONE (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 May 2023.

Principal activities

The principal activity of the group is the design, manufacture and sale of commercial furniture, within the UK and overseas markets.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £2,400,000.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr R Woodbridge
Mrs N McNaught
Mr C Hagan
Auditor

The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mrs N McNaught
Director
20 February 2024
NAUGHTONE (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

NAUGHTONE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NAUGHTONE (HOLDINGS) LIMITED
- 5 -
Opinion

We have audited the financial statements of NaughtOne (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

NAUGHTONE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NAUGHTONE (HOLDINGS) LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of company minutes and legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

NAUGHTONE (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NAUGHTONE (HOLDINGS) LIMITED
- 7 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jamie Williams (Senior Statutory Auditor)
For and on behalf of BHP LLP
20 February 2024
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
NAUGHTONE (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
31,892,021
26,241,295
Cost of sales
(20,359,845)
(16,848,889)
Gross profit
11,532,176
9,392,406
Administrative expenses
(6,654,515)
(4,954,668)
Operating profit
4
4,877,661
4,437,738
Interest receivable and similar income
8
10
52
Profit before taxation
4,877,671
4,437,790
Tax on profit
9
(982,341)
(842,361)
Profit for the financial year
3,895,330
3,595,429
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
NAUGHTONE (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 MAY 2023
31 May 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
7,434
-
Tangible assets
12
498,998
443,527
506,432
443,527
Current assets
Stocks
15
1,380,591
1,978,576
Debtors
16
5,417,633
6,235,341
Cash at bank and in hand
3,875,410
4,601,633
10,673,634
12,815,550
Creditors: amounts falling due within one year
17
(4,249,178)
(7,847,011)
Net current assets
6,424,456
4,968,539
Total assets less current liabilities
6,930,888
5,412,066
Provisions for liabilities
Deferred tax liability
18
78,905
55,413
(78,905)
(55,413)
Net assets
6,851,983
5,356,653
Capital and reserves
Called up share capital
20
99
99
Profit and loss reserves
6,851,884
5,356,554
Total equity
6,851,983
5,356,653
The financial statements were approved by the board of directors and authorised for issue on 20 February 2024 and are signed on its behalf by:
20 February 2024
Mrs N McNaught
Director
NAUGHTONE (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
201
201
Current assets
Debtors
16
99
99
Creditors: amounts falling due within one year
17
(201)
(201)
Net current liabilities
(102)
(102)
Net assets
99
99
Capital and reserves
Called up share capital
20
99
99

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,400,000 (2022 - £2,264,247 profit).

The financial statements were approved by the board of directors and authorised for issue on 20 February 2024 and are signed on its behalf by:
20 February 2024
Mrs N McNaught
Director
Company Registration No. 08064727
NAUGHTONE (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
99
4,025,372
4,025,471
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
3,595,429
3,595,429
Dividends
10
-
(2,264,247)
(2,264,247)
Balance at 31 May 2022
99
5,356,554
5,356,653
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
3,895,330
3,895,330
Dividends
10
-
(2,400,000)
(2,400,000)
Balance at 31 May 2023
99
6,851,884
6,851,983
NAUGHTONE (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 May 2022:
Balance at 1 June 2021
99
-
0
99
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
2,264,247
2,264,247
Dividends
10
-
(2,264,247)
(2,264,247)
Balance at 31 May 2022
99
-
0
99
Year ended 31 May 2023:
Profit and total comprehensive income for the year
-
2,400,000
2,400,000
Dividends
10
-
(2,400,000)
(2,400,000)
Balance at 31 May 2023
99
-
0
99
NAUGHTONE (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
2,746,523
4,819,357
Income taxes (paid)/refunded
(796,521)
81,483
Net cash inflow from operating activities
1,950,002
4,900,840
Investing activities
Purchase of intangible assets
(7,577)
-
Purchase of tangible fixed assets
(268,658)
(204,104)
Interest received
10
52
Net cash used in investing activities
(276,225)
(204,052)
Financing activities
Dividends paid to equity shareholders
(2,400,000)
(2,264,247)
Net cash used in financing activities
(2,400,000)
(2,264,247)
Net (decrease)/increase in cash and cash equivalents
(726,223)
2,432,541
Cash and cash equivalents at beginning of year
4,601,633
2,169,092
Cash and cash equivalents at end of year
3,875,410
4,601,633
NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 14 -
1
Accounting policies
Company information

NaughtOne (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Central House, Beckwith Knowle, Harrogate, North Yorkshire, HG3 1UG.

 

The group consists of NaughtOne (Holdings) Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company NaughtOne (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 May 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The Directors have prepared forecasts to December 2024 and have confirmed the Group will remain profitable. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (on delivery of the goods per the company's terms and conditions of sale), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. Where invoices are raised in advance of delivery, revenue is deferred.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 16 -

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Trademarks
33% straight line
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
20% straight line
Plant and machinery
25% straight line
Fixtures, fittings and equipment
20% straight line
IT equipment
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 18 -
1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 20 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 21 -
1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Grants received in relation to the government Coronavirus Job Retention Scheme (Furlough) have been recognised within other operating income. The grant is accounted for on the accruals basis once the related payroll return has been submitted.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revenue recognition

Revenue is recognised on delivery. Invoices are raised either on delivery or on order if a deposit is required. Therefore, ensuring correct cut-off at the year end is a key area of risk.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of furniture
28,273,425
23,496,137
Other income
3,618,596
2,745,158
31,892,021
26,241,295
2023
2022
£
£
Turnover analysed by geographical market
European Union
817,814
824,908
United Kingdom
9,828,012
9,022,101
Rest of World
1,673,382
1,133,278
North America
19,572,813
15,261,008
31,892,021
26,241,295
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
384,510
(233,353)
Depreciation of owned tangible fixed assets
212,536
261,812
Loss on disposal of tangible fixed assets
651
-
Amortisation of intangible assets
143
-
Operating lease charges
401,551
399,404
NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 23 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,495
2,750
Audit of the financial statements of the company's subsidiaries
13,120
10,670
16,615
13,420
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Production and operations
40
34
-
-
Administrative
43
47
-
-
Senior management team
2
2
-
-
Total
85
83
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,583,989
3,283,085
-
0
-
0
Social security costs
370,391
307,840
-
-
Pension costs
103,825
94,752
-
0
-
0
4,058,205
3,685,677
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
309,887
321,661
Company pension contributions to defined contribution schemes
14,518
14,000
324,405
335,661
NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
7
Directors' remuneration
(Continued)
- 24 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
160,002
167,903
Company pension contributions to defined contribution schemes
4,326
9,800
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
10
52
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
958,849
839,473
Deferred tax
Origination and reversal of timing differences
23,492
2,888
Total tax charge
982,341
842,361

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
4,877,671
4,437,790
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
975,534
843,180
Tax effect of expenses that are not deductible in determining taxable profit
(16,883)
(9,887)
Adjustments in respect of prior years
18,683
(19,866)
Effect of change in deferred tax rates
5,007
16,587
Other
-
0
12,347
Taxation charge
982,341
842,361
NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 25 -
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
2,400,000
2,264,247
NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 26 -
11
Intangible fixed assets
Group
Trademarks
£
Cost
At 1 June 2022
7,165
Additions
7,577
Disposals
(7,165)
At 31 May 2023
7,577
Amortisation and impairment
At 1 June 2022
7,165
Amortisation charged for the year
143
Disposals
(7,165)
At 31 May 2023
143
Carrying amount
At 31 May 2023
7,434
At 31 May 2022
-
0
The company had no intangible fixed assets at 31 May 2023 or 31 May 2022.
NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 27 -
12
Tangible fixed assets
Group
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
IT equipment
Total
£
£
£
£
£
Cost
At 1 June 2022
78,301
740,570
17,828
94,160
930,859
Additions
-
0
224,209
18,754
25,695
268,658
Disposals
-
0
-
0
-
0
(18,600)
(18,600)
At 31 May 2023
78,301
964,779
36,582
101,255
1,180,917
Depreciation and impairment
At 1 June 2022
32,290
412,709
10,510
31,823
487,332
Depreciation charged in the year
17,710
166,764
3,930
24,132
212,536
Eliminated in respect of disposals
-
0
-
0
-
0
(17,949)
(17,949)
At 31 May 2023
50,000
579,473
14,440
38,006
681,919
Carrying amount
At 31 May 2023
28,301
385,306
22,142
63,249
498,998
At 31 May 2022
46,011
327,861
7,318
62,337
443,527
The company had no tangible fixed assets at 31 May 2023 or 31 May 2022.
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
201
201
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 June 2022 and 31 May 2023
201
Carrying amount
At 31 May 2023
201
At 31 May 2022
201
NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 28 -
14
Subsidiaries

Details of the company's subsidiaries at 31 May 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Naught One Ltd
UK
Design and manufacture of quality furniture
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
1,380,591
1,978,576
-
0
-
0
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,502,799
2,091,813
-
0
-
0
Other debtors
2,471,195
3,822,689
99
99
Prepayments and accrued income
443,639
320,839
-
0
-
0
5,417,633
6,235,341
99
99
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Payments received on account
733,175
1,759,445
-
0
-
0
Trade creditors
686,422
1,718,880
-
0
-
0
Corporation tax payable
1,478,223
1,315,895
-
0
-
0
Other taxation and social security
207,377
112,642
-
-
Other creditors
302,944
1,413,253
201
201
Accruals and deferred income
841,037
1,526,896
-
0
-
0
4,249,178
7,847,011
201
201
NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 29 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
78,905
55,413
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 June 2022
55,413
-
Charge to profit or loss
23,492
-
Liability at 31 May 2023
78,905
-
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
103,825
94,752

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 5p each
1,980
1,980
99
99

Included in share capital is 1,980 A Ordinary shares issued but not fully paid up.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 30 -
21
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
318,183
369,737
-
-
Between two and five years
191,538
511,882
-
-
509,721
881,619
-
-
NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 31 -
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
397,987
393,982
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities with control, joint control or significant influence over the group
1,773,237
1,979,739
6,415
314
Other related parties
5,377,295
3,497,378
3,032,364
3,569,457
Recharges/Alliance fee due to
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the company
376,726
253,266
Other related parties
6,201
5,384

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Other related parties - included in Other Creditors
302,743
1,413,052

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities with control, joint control or significant influence over the group - included in Other Debtors
918,387
2,269,918
Other related parties - included in Other Debtors
1,552,707
1,461,242

Related party balances due are interest free and repayable on demand.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 32 -
23
Controlling party

The immediate parent company is Herman Miller Holdings Limited, a company incorporated in England and Wales.

The ultimate parent undertaking is MillerKnoll Inc, a company incorporated in the state of Michigan, USA. This is the smallest and largest group of companies for which group financial statements are prepared and for which this company is a member.

 

Copies of its group financial statements are available on-line at www.millerknoll.com in the investors section.

24
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,895,330
3,595,429
Adjustments for:
Taxation charged
982,341
842,361
Investment income
(10)
(52)
Loss on disposal of tangible fixed assets
651
-
Amortisation and impairment of intangible assets
143
-
Depreciation and impairment of tangible fixed assets
212,536
261,812
Movements in working capital:
Decrease/(increase) in stocks
597,985
(97,086)
Decrease/(increase) in debtors
817,708
(3,931,482)
(Decrease)/increase in creditors
(3,760,161)
4,148,375
Cash generated from operations
2,746,523
4,819,357
25
Analysis of changes in net funds - group
1 June 2022
Cash flows
31 May 2023
£
£
£
Cash at bank and in hand
4,601,633
(726,223)
3,875,410
26
Restatement of profit and loss account

The group has reallocated certain items in the prior year Profit & Loss Account for comparability purposes.

NAUGHTONE (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
26
Restatement of profit and loss account
(Continued)
- 33 -
Changes to the profit and loss account - group
As previously reported
Adjustment
As restated
Period ended 31 May 2022
£
£
£
Turnover
26,222,749
18,546
26,241,295
Cost of sales
(16,862,214)
13,325
(16,848,889)
Administrative expenses
(4,941,343)
(13,325)
(4,954,668)
Other operating income
18,546
(18,546)
-
Profit after taxation
3,595,429
-
3,595,429

The company has reallocated certain items in the prior year Profit & Loss Account to enable comparison with current year results. The tables above show the impact to the comparative Profit & Loss account. There was no impact to the balance sheet and other primary statements.

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